According to Dr. Dinh The Hien, in 2018, Vietnam real estate market will generally lead the demand for investment. However, in different segments will receive different changes, which affect the choice psychology of investors.
Real estate continues to be attractive investment channel in Vietnam
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The above opinion was said by Ms. Duong Thuy Dung, Senior Director at CBRE Vietnam, at the Vietnam - U.S. Real Estate Investment Conference 2018, held in HCMC in collaboration with US-based real estate agencies.
According to Ms. Dung, the number of foreigners certified to own real estate in Ho Chi Minh City is about 1000 people, of which 35% are US residents. The number of foreigners owning real estate in Vietnam has risen to 40% compared to 2015. Seventy percents of CBRE's clients investing in Vietnam are international investors, of which 30% from US.
Sunny Hoang Ha, representative of Department of International Clients at Savills, said Vietnam real estate is increasingly attractive to international investors. Now is the most favorable time for US investors paying attention to the Vietnam market to make investment decision.
Vietnamese Government has approved extremely open policies to create the best conditions for foreigners to own and invest in property. In particular, previously, Vietnamese law only allowed international investors to own property for residence; limited the lease or ownership transfer.
The ownership term was also limited to 50 years. But now, more types of real estate are available for foreigners. They can invest, transfer real estate and even use real estate in Vietnam for mortgage in their home countries.
The term of foreign ownership is also extended to additional 50 years. This move is considered an open door for many international investors to participate in the Vietnam market.
Along with easing on the legal issues, the profit potential of real estate investment in Vietnam is an important factor that makes many international investors choose the Southest Asian country as their destination.
Mr. Nguyen Quoc Anh, Deputy General Director of Dai Viet Investment and Technology JSC, suggested international investors paying attention to two segments: apartment and resort property in Vietnam.
According to data from the Foreign Investment Department, 115 countries and territories invested in Vietnam in 2017. The increase in foreign investment flows shows that many world’s large enterprises have been setting up workshops and branches in Vietnam to take advantages of abundant labor force.
This will lead to a large demand for housing for Vietnamese workers in the industrial zones and for foreign experts in office complexes. Demand for residential real estate is expected to increase sharply in the coming time.
In addition, Vietnam is a tourist paradise among the top five must-visit countries in 2017. This has contributed to the growth of resort property, and infrastructure for tourism.
In another aspect, Mr. Truong Anh Tu - Director of Phuc Khang Corporation analyzed, Vietnam’s GDP growth in recent years has always been stable. The population has grown impressively with over 70% of young workers under 30.
The rise of the middle class and small size of households are creating a premise for the development of residential real estate in Vietnam.
Besides, people's income has improved gradually over the years, creating high demand not only for settlement but also investment and accumulation. Along with residential real estate, other segments like office, retail and industrial real estate are also very worthwhile playgrounds for foreign investors, Mr. Tu stressed.
Also within the framework of the conference, leading US industry experts discuss market outlook and Vietnam-US two-way real estate investment in 2018 and to connect investment opportunities and cooperation between real estate firms in both countries.
Through the conference, the delegation will study more about the potential of Vietnam property market, products as well as the process of buying real estate for foreigners or overseas Vietnamese as individual investors.
